A Data Picture of USAID Public - Private Partnerships: 2001-2014 George M. Ingram, Senior Fellow, The Brookings Institution with Julie Biau, Research Assistant, The Brookings Institution October 2014 After months of collecting and scrubbing the data, USAID has released a dataset on its public-private partnerships (PPPs) since 2001. USAID estimates that it has engaged in some 1,600 PPPs since 2000. The data set contains 1,383 separate PPP entries, is over 90 percent complete. Until this most recent effort, there has been no systematic collection of data but rather periodic data calls, which in some years did not occur. Although the data is not complete, it is the best, most comprehensive information we have on USAID s public-private partnerships. USAID uses two terms for its partnerships with private entities: public-private partnership (PPP) and Global Development Alliance (GDA). It considers a GDA to be a specific model of a PPP. The Global Development Alliance Annual Program Statement sets out two basic criteria for a GDA. It must include at least one or more private sector entities, the list of which is inclusive: private businesses, financial institutions, entrepreneurs, venture capitalists, and investors foundations and philanthropists other for-profit and not-for-profit entities In addition, other entities, broadly identified, may participate in a PPP. The second criteria is the partner(s) must bring significant resources, ideas, technologies, and/or partners to the activity, and the value of that contribution (cash and in-kind) must at least equal the USAID contribution. As to the definition of a public-private partnership, the background note to the new dataset uses essentially the same criteria as the GDA definition, with the exception that it does not reference the minimum 1:1 leverage ratio. As the definition of a GDA has been modified over the years, USAID uses the term PPP in a more generic sense in order to capture partnerships that might not fit the current GDA definition. This brief is an initial presentation of some of the information the data provides. A more comprehensive understanding of the nature and results of USAID s PPPs requires more detailed analysis of the data and of the supporting documentation.
THE NUMBER OF PUBLIC-PRIVATE PARTNERSHIPS USAID established a formal PPP program under the term Global Development Alliance in 2001. As noted above, the dataset lists 1,383 PPPs over a period of 14 years. This makes for an average of almost 100 partnerships a year. 2006 was a bumper year, with 155 PPPs established. In 2009, when only 61 partnerships are shown to be established, the data is likely not complete because of the absence of a data call that year. Note, for this and other graphs, the low numbers for 2014 obviously represent reporting for only part of the year. All tables and figures are based on data from the USAID Public-Private Partnerships Database, accessible at http://www.usaid.gov/data. Figure 1: Number of Public-Private Partnership Established by Year 180 160 140 120 100 80 60 92 89 104 118 145 155 138 124 61 105 79 84 82 40 20 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 5 2 A Data Picture of USAID Public - Private Partnerships: 2001-2014
LIFETIME VALUE USAID bases the monetary value of PPPs on actual investments for completed PPPs and on commitments for ongoing PPPs. The lifetime value of all PPPs totals $14.3 billion. USAID investment has totaled $3.8 billion and partner investments $10.3 billion. USAID s investments account for approximately 27 percent of lifetime investment and partner contributions equal 72 percent. (The missing 1 percent is due to a discrepancy in the database between the lifetime investment column and the two columns for U.S. government investment and non-u.s. government investment.) Across all PPPs, the leverage ratio is approximately 1 to 3.74. Figure 2: Total Investment Value of Public-Private Partnerships by Year (Millions of U.S. Dollars, current) 6000 5000 4,980 4000 3000 2000 1000 0 1,875 1,482 1,002 695 714 825 445 500 452 514 478 293 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 A Data Picture of USAID Public - Private Partnerships: 2001-2014 3
ANNUAL RANGE IN VALUE The range of PPP investment each year is significant: from $4.9 billion in 2006 to $293 million in 2009. Excluding the one project from 2006 that is an outlier (the Drug Donation for Neglected Tropic Diseases, with a life time value of $4.2 billion), the range is $293 million in 2006 to $1.9 billion in the first year, 2001. Omitting 2014, for which the list of projects is not yet complete, this would place the yearly average at approximately $770 million. Figure 3: Total Investment Value of Public-Private Partnerships by Year, Excluding Outliers (Millions of U.S. Dollars, current) 3000 2500 2000 1500 1000 500 0 1,875 1,482 1,002 825 695 714 780 445 500 452 514 478 293 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Note: figure excludes the Drug Donation for Neglected Tropic Diseases established in 2006, which is an outlier. DURATION The most common length for a PPP is three years. One-quarter of PPPs have a duration of three years. Next most frequent are 2-year PPPs (19.6 percent of the total) and 4-year PPPs (17.4 percent). Five-year and oneyear PPPs are rarer, representing 11.7 percent and 11.5 percent of the total sample respectively. Sixty-two percent of the PPPs in the dataset have a life of two to four years, and 85 percent last between one and five years. Figure 4: Distribution of Public-Private Partnerships by Duration (Years) 400 350 300 250 200 150 100 50 0 29 158 271 346 241 162 65 29 10 8 11 7 1 1 1 0 2 4 6 8 10 12 16 no end date 41 4 A Data Picture of USAID Public - Private Partnerships: 2001-2014
RESOURCE PARTNERS USAID distinguishes between resource partners and implementing partners. Resource partners are those organizations that contribute financially or otherwise to the partnership. Implementing partners are organizations that implement the project. The AID database identifies over 3,000 separate organizations that have served as a resource partner in one or more PPP. Of the 1,383 PPPs listed in the database, 549 have a single resource partner and 834 have multiple resource partners. Resource partners include corporations, NGOs, foundations, universities, international organizations, bilateral donors, host-country national and local government entities, associations, local banks and small and mediumsized enterprises, U.S. cities, and U.S. chambers of commerce. The list below, headed by Microsoft, presents the 63 organizations that have been involved in 5 or more partnerships. Further analysis of the nature of resource partners will require sorting through the entire list of more than 3,000 organizations. Table 1: Organizations Most Frequently Participating in USAID Public-Private Partnerships as Resource Partners Resource Partner # Microsoft Corporation 51 Chevron 32 Coca Cola Company 32 Cisco Systems 25 Intel 21 ExxonMobil 19 Citigroup 18 U.K. Department for International Development 15 World Bank 15 Walmart 14 Pfizer 12 Save the Children 12 American Chambers of Commerce (AMCHAM) 11 BP 11 Cargill 11 Conservation International 11 APLR 10 Inter-American Development Bank (IDB) 10 Johnson and Johnson 10 Ministry of Education 10 Evensen Dodge International (EDI) Hewlett Packard Company (HP) # Number of Partnerships 9 9 Resource Partner # Johns Hopkins University 9 United Nations Development Program (UNDP) Winrock International 9 Kraft Foods 8 Nike 8 Ford Foundation 7 GTZ 7 Host Country Local Media 7 United Nations Children s Fund (UNICEF) Western Union 7 World Wildlife Fund (WWF) 7 Barrick 6 Coca Cola Foundation 6 GE Foundation 6 International Finance Corporation (IFC) Johns Hopkins University Center for Communication Programs (JHUCCP) Junior Achievement Worldwide Merck Co. 6 Odebrecht 6 Qualcomm Inc 6 9 7 6 6 6 Resource Partner # Rockefeller Foundation 6 Starbucks 6 Abbott Laboratories 5 Accion Social 5 Antamina 5 Barclays Bank 5 David and Lucille Packard Foundation DeBeers 5 General Electric (GE) 5 General Mills 5 GlaxoSmithKline 5 Green Mountain Coffee 5 IOM 5 Land O Lakes 5 Monsanto 5 Nature Conservancy 5 Olam International 5 SMART Telecommunications Standard Bank Namibia 5 TechnoServe 5 United Nations Foundation (UNF) 5 5 5 A Data Picture of USAID Public - Private Partnerships: 2001-2014 5
IMPLEMENTING PARTNERS Twenty-four implementing partners have been involved in 2 or more partnerships. These organizations are all traditional U.S. nongovernmental organization and contractor development implementers. BOTH RESOURCE & IMPLEMENTING PARTNERS Nineteen organizations have served as both resource partners and implementing Table 2: Organizations Most Frequently Participating in USAID Public-Private Partnerships as Implementing Partners Implementing Partner Frequency CARE International 19 ACDI/VOCA 13 AED 12 PSI 9 DAI 8 CRS 8 Chemonics International 7 TechnoServe 7 Save the Children 7 Mercy Corps 6 World Vision 6 Carana 5 FHI 5 Winrock International 4 Nathan Associates 4 IYF 3 Aid to Artisans 3 Solimar International 3 AFRICARE 2 Conservation International 2 World Learning 2 PATH 2 Counterpart International 2 CHF International 2 Table 3: Organizations Participating in USAID Public-Private Partnerships as Both Resource and Implementing Partners CARE International CHF International Conservation International Creative Associates Education Development Center FINTRAC Georgetown University Institute for Sustainable Communities Junior Achievement Worldwide KNCV Tuberculosis Foundation Mercy Corps Olam International PACT Population Services International (PSI) Save the Children TechnoServe Winrock International World Learning World Vision 6 A Data Picture of USAID Public - Private Partnerships: 2001-2014
REGIONAL DISTRIBUTION The regional breakdown puts the largest number of PPPs, 423, in Africa. Latin America is in second place with 394 projects. Asia has hosted 340 partnerships, of which 66 are identified with the USAID Office of Afghanistan and Pakistan. The Middle East has hosted the fewest, 56. Sixty-two projects are listed as global. Note that the five projects in the database listed without a region or country and the one project based in the United States are not included in the breakdown below. Also, due to multi-region projects, adding the numbers in the frequency column produces a number greater than the total number of PPPs. Table 4: Distribution of USAID Public- Private Partnership Projects by Region Region Frequency Africa 423 LAC 394 Asia 340 *OAPA 66 *other Asia 274 Europe/Eurasia 170 MENA 56 Global 62 Note: OAPA is the Office of Afghanistan and Pakistan Affairs. COUNTRY DISTRIBUTION USAID has engaged in PPPs in 91 countries, 54 of which have been the locus of 10 or more partnerships. At the top of the list is Colombia with 100 PPPs seven percent of the total. South Africa has had 82, India 70, Georgia 62, and the Philippines 61. Table 5: Distribution of USAID Public-Private Partnership Projects by Country Country Frequency Colombia 100 South 82 Africa 82 India 70 Georgia 62 Philippines 61 El Salvador 56 Peru 53 Afghanistan 51 Kenya 50 Ghana 46 Guatemala 46 Indonesia 43 Nigeria 41 Uganda 37 Tanzania 36 Honduras 32 Brazil 29 Malawi 29 Country Frequency Zambia 29 Nicaragua 27 Armenia 26 Ecuador 26 Ethiopia 26 Angola 25 Dominican Republic 25 Russia 23 Rwanda 23 Egypt 22 Jordan 21 Bolivia 21 Mexico 21 Jamaica 20 Ukraine 20 Democratic Republic of Congo 20 Mali 20 Country Frequency Mozambique 20 Vietnam 19 Panama 19 Senegal 18 Namibia 16 Bangladesh 16 Nepal 15 Pakistan 15 Sri Lanka 14 Haiti 14 Cambodia 14 Cote d Ivoire 14 Kazakhstan 13 Guinea 11 Thailand 11 Burkina Faso 11 Bulgaria 10 Morocco 10 A Data Picture of USAID Public - Private Partnerships: 2001-2014 7
PARTNERSHIPS BY SECTOR Most of the PPPs are identified as existing in a single sector, but some cover multiple sectors. Counting up each time a sector is identified as being the subject of a partnership (including multi-sector projects) produces a breakdown that puts economic growth in the lead, with 375 PPPs, followed by health (314) and agriculture (202). Table 6: Distribution of USAID Public-Private Partnership Projects by Sector Sector Frequency Economic Growth, Trade, and Entrepreneurship 375 Health 314 Agriculture and Food Security 202 Environment 135 Education 133 Democracy and Governance 100 Humanitarian Assistance 71 Information and Communication Technology 62 Energy 43 Water Sanitation 28 Gender Equality and Women's Empowerment 25 Note: Due to projects that are identified as involving multiple sectors, adding the numbers in the frequency column produces a number greater than the total number of PPPs. 8 A Data Picture of USAID Public - Private Partnerships: 2001-2014
VALUE OF INVESTMENTS BY SECTOR The table below presents the total value of PPP investments in each sector. This presentation is not a complete representation of the value by sector. As it is not possible to identify the value distribution by sector of multisector projects, the $772 million in multi-sector projects is excluded from this table. The big number is in health $7.2 billion dollars. Whereas 22 percent of the number of single-sector projects have been in health, these represent 54 percent of total investment in single-sector PPPs, making the average investment in health PPPs considerably larger than for projects in other sectors. Agriculture and food security represents 14 percent of single-sector projects and 15 percent of investments. Fourteen projects in water and sanitation represent one percent of single-sector PPPs but the total value does not reach one percent. Project size varies considerably by sector. Table 7: Distribution of Investment and Projects by Sector (Single-Sector Public-Private Partnerships) Sector Total Lifetime Investment (Millions of U.S. Dollars, current) Share of Total Investment (%) Share of Total Projects (%) Agriculture and Food Security 1,957.71 15 14 Democracy and Governance 504.84 4 7 Education 855.6 6 8 Energy 192.45 1 3 Environment 612.79 5 9 Gender Equality and Women's Empowerment 72.62 1 2 Health 7,221.16 54 22 Humanitarian Assistance 293.69 2 5 Information and Communication Technology 222.53 2 4 Water Sanitation 22.1 0 1 Economic Growth, Trade, and Entrepreneurship 1,538.50 11 25 Total 13,493.99 100 100 Note: excludes all multi-sector projects and all projects where no sector is specified. A Data Picture of USAID Public - Private Partnerships: 2001-2014 9
DISTRIBUTION BY COUNTRY INCOME The breakdown below represents the locus of PPPs by country income level, using World Bank classifications. Listed as other are projects that are multi-country, global, or for which no country is listed. This is a significant data gap, for while these PPPs represent only about 15 percent of projects, they account for half the investment value. A further caveat on this presentation is that, as the World Bank classification used here is the most recent (2013), most of the partnerships were commenced during the prior decade and some countries have transitioned to a higher income category. So, the breakdown represents only half the value of PPPs and the country income category may not reflect a country s position when a particular PPP was initiated. Depending on how one views the category lower middle income countries, either as better-off middle income countries or as poor developing countries, one could determine that a majority of projects are in poor developing countries or in middle income countries. The average investment in a partnership is relatively even over the income groups, about $200,000 on either side of $5 million. The big disparity is with regional and global PPPs, the average size of which is more than six times that range over $36 million. Table 8: Distribution of Countries and Projects by Host-Country Income Level (Single-Country Public-Private Partnerships) Host-country income level Countries (Number) Projects (Number) Total Value (U.S. Dollars, current) Note: Other refers to regional and global projects, or projects for which no country is listed. Average Value (U.S. Dollars, current) Low Income 27 262 1,450,783,802 5,537,343 Lower Middle Income 31 482 2,473,642,212 5,132,038 Upper Middle Income 28 400 2,291,365,373 5,728,413 High Income: Non-OECD 4 21 80,823,318 3,848,729 Other 119 218 7,971,752,070 36,567,670 TOTAL 209 1,383 14,268,366,775 10 A Data Picture of USAID Public - Private Partnerships: 2001-2014
FREQUENCY OF REGIONAL AND GLOBAL PPPS Looking at the principal sector focus of global and regional partnerships (listed as Other in the prior table), health accounts for the largest number, almost 30 percent, followed by economic growth (26 percent), agriculture and food security (18 percent), environment (8 percent), and education (7 percent). Table 9: Distribution of Projects by Sector (Global and Regional Public-Private Partnerships) Sector Projects (Number) Share of Projects (%) Cumulative percentage (%) Health 56 28.28 28.28 Economic Growth, Trade and Entrepreneurship 51 25.76 54.04 Agriculture and Food Security 36 18.18 72.22 Environment 15 7.58 79.80 Education 13 6.57 86.36 Democracy and Governance 12 6.06 92.42 Information and Communication Technology 7 3.54 95.96 Energy 3 1.52 97.47 Gender Equality and Women's Empowerment 3 1.52 98.99 Humanitarian Assistance 2 1.01 100.00 Note: Table excludes multi-sector projects and projects where no sector is specified. LEVERAGE OF USAID INVESTMENT BY INCOME GROUP As pointed out earlier, USAID s investment of $3.8 billion in 1,383 PPPs from 2001 to 2014, to which non-aid entities contributed a total of $10.3 billion, produces an average ratio of approximately 1 to 3.74. Looking at how that breaks down by income group, the highest leverage (1:3.94) is with lower middle income countries and the lowest (1:2.62) with low income. Table 10: Average PPP Leverage Ratio by Host-Country Income Level (Single-Country Public-Private Partnerships) Host-country Income Level Average Leverage Ratio Low Income 2.62 Lower Middle Income 3.94 Upper Middle Income 3.04 High Income: Non-OECD 11.55 Note: excludes regional and global projects, or projects for which no country is listed. The high income (non-oecd) leverage ratio is not meaningful as it represents only 21 projects valued at $80 million of a portfolio of $14.3 billion. A Data Picture of USAID Public - Private Partnerships: 2001-2014 11
LEVERAGE OF USAID INVESTMENT BY SECTOR A sector breakdown reveals the highest leverage ratio in economic growth, at 1:4.90, followed by health at 1:4.47, democracy and governance at 1:4.09, education at 1:3.39, and agriculture & food security at 1:3.31. The lowest ratios are in gender at 1:1.80, and water and sanitation, at 1:1.92. Table 11: Average Leverage Ratio of Single- Sector Public-Private Partnerships by Sector Project Sector Economic Growth, Trade, and Entrepreneurship Average Leverage Ratio 4.90 Health 4.47 Democracy and Governance 4.09 Education 3.39 Agriculture and Food Security 3.31 Environment 3.06 Information and Communication Technology 2.69 Humanitarian Assistance 2.69 Energy 2.11 Water Sanitation 1.92 Gender Equality and Women's Empowerment 1.80 Note: excludes all multi-sector projects and all projects where no sector is specified. LEVERAGE OF USAID INVESTMENT BY DURATION OF PPP The leverage ratio by year shows no distinct pattern, with PPPs of one, three, five, and six years in length all within a close range of 1:4. Two and four year PPPs have a range about half a point lower. As these projects, between 1 and 6 years in duration, represent over 90 percent of PPPs, there are few PPPs in the other years and so these ratios are less meaningful. Table 12: Average Public-Private Partnership Leverage Ratio by Project Duration Project Duration (years) Average Leverage Ratio 0 4.98 1 3.98 2 3.51 3 4.00 4 3.33 5 4.13 6 3.98 7 2.87 8 4.68 9 2.28 10 3.95 11 1.99 12 1.54 13 14.73 16 0.72 12 A Data Picture of USAID Public - Private Partnerships: 2001-2014
LEVERAGE OF USAID INVESTMENT BY YEAR Looking at the investment ratio by year produces no discernable pattern, with a wide fluctuation ranging from 1:1.59 in 2009 (a year in which there was no data call) to 1:8.10 in 2011. There does appear to be a fall-off in the last three years, 2012 through 2014, but only the final data for 2014 and subsequent years will determine whether this is a pattern. Table 13: Average Leverage Ratio of Public- Private Partnerships by Start Year Project Start Year Average Leverage Ratio 2001 5.38 2002 3.00 2003 4.45 2004 4.30 2005 2.12 2006 3.41 2007 3.65 2008 5.36 2009 1.59 2010 3.28 2011 8.10 2012 2.77 2013 1.92 2014 1.64 LEVERAGE OF USAID INVESTMENT BY REGION By region, the investment ratio is highest for Europe/ Eurasia, at 1:4.68, followed closely by the sub-region of Pakistan and Afghanistan (OAPA). The lowest ratio is in the Middle East, at 1:2.56. Asia and Latin America fall in the middle. Table 14: Average Leverage Ratio of Single- Country Public-Private Partnerships by Region of Host Country Project Region Average Leverage Ratio Africa 3.01 Asia 3.20 OAPA 4.42 Europe/Eurasia 4.68 LAC 3.70 MENA 2.56 A Data Picture of USAID Public - Private Partnerships: 2001-2014 13